UPS Import C.O.D. (ICOD) Charges: What They Are and How to Pay

2026 UPS rate: the Import C.O.D. (ICOD) fee is $12.00, charged to the U.S. recipient when UPS collects unpaid duties, taxes and fees at delivery. On top of the duty itself, UPS charges a disbursement fee of 2.5% of the duty and tax it pays for you, with a $17.50 minimum.

Quick answer: Import C.O.D. is how UPS collects import charges from the person receiving an international package. UPS clears the package through U.S. Customs, often pays the duty and tax up front, and then bills it back with its brokerage fees. If you pay at the door, UPS adds the $12 ICOD fee. Pay online at ups.com before delivery and the ICOD fee does not apply. These bills are more common now because U.S. Customs and Border Protection (CBP) has suspended the $800 de minimis exemption that used to let low-value packages in duty-free.

Few people check brokerage lines against the published fees. A carrier invoice audit does.

Sources: UPS 2026 Rate and Service Guide (Daily Rates, updated September 7, 2026), Customs Brokerage section; UPS “Understanding Import Fees”; CBP rule of June 24, 2026 and CBP e-commerce FAQs. Checked October 30, 2026.

2027 update: UPS Daily Rates rise an average net 5.9% effective December 21, 2026. UPS's 2027 preview of value-added service charges does not list the Import C.O.D. fee or the disbursement fee, so UPS hasn't published their 2027 amounts yet; they will be in the 2027 UPS Rate and Service Guide on December 21, 2026. The figures below are 2026 rates; see our UPS 2027 rate increase guide. Source: UPS 2027 preview of value-added service charges.

What Is UPS Import C.O.D. (ICOD)?

The UPS rate guide defines the Import Collect On Delivery (ICOD) Fee as a fee assessed to the U.S. consignee when UPS collects import charges at the time of delivery, together with any unpaid duties, taxes and other fees for the shipment. UPS’s import-fees page lists the same charge as the “International Collect on Delivery (COD) Fee”: $12 if the duties are not paid before delivery, charged to the U.S. recipient.

It is not the C.O.D. service a seller buys to collect the price of goods (see our UPS COD fee guide):

Why You Got an Import C.O.D. Bill

The UPS rate guide makes the importer responsible for all brokerage fees, including duties and taxes. UPS often pays the government charges up front so the package can enter the country, then bills the exporter or importer depending on the transportation mode and the sale’s Incoterm. If the seller didn’t prepay duties, the bill goes to you.

The de minimis change

Section 321 of the Tariff Act (19 U.S.C. 1321) is the de minimis rule. CBP describes it as duty- and tax-free entry for goods imported by one person on one day with a total fair retail value of no more than $800. That exemption is suspended:

• August 29, 2025: CBP began enforcing Executive Order 14324, which suspended duty-free de minimis treatment for goods valued at $800 or less from all countries.
• June 24, 2026: CBP published a rule that suspends the de minimis exemption indefinitely for imports valued at $800 or less arriving by every mode except the international postal network, effective the same day. A companion rule for mail took effect July 24, 2026.
• What it means: those shipments must now go through formal or informal entry, so duties, taxes and brokerage fees apply. CBP’s FAQ says the separate exemptions for bona fide gifts and for travelers’ personal articles remain unchanged.

What’s on the Bill: 2026 UPS Brokerage Fees

The UPS Customs Brokerage fees most likely on a small-package bill, from the September 7, 2026 rate guide. Government agencies’ own fees are billed on top.

The disbursement fee went up during 2026. The January 26, 2026 edition of the rate guide listed it at 2% of duty and tax with a $14.00 minimum; the September 7, 2026 update lists 2.5% with a $17.50 minimum. Because of the minimum, the percentage only matters once duty and tax pass $700. Below that, you pay $17.50.

Example (illustrative): a package with $40 of duty and tax that you pay at the door would cost $40 + $17.50 disbursement fee + $12 ICOD fee = $69.50, before any CBP processing fee. Paying online before delivery takes off the $12.

How to Pay UPS Import Charges (and Skip the $12 Fee)

1. Pay online before delivery. Track the package on ups.com. If a yellow banner appears, click Pay Now to see the charges and payment options.
2. Use the payment notification. You get it only if the shipper gave UPS your contact details and you opted in to UPS notifications.
3. Paying at the door. The driver may be able to accept payment, but UPS adds the $12 fee and payment options are limited.

Under the rate guide, the ICOD fee also does not apply if the duties and taxes were billed to a UPS account number before delivery, for example a seller’s account on a duties-paid shipment.

What Happens If You Don’t Pay

UPS says it will try to collect through its normal collections process. If the receiver still hasn’t paid at the end of that process, which runs up to 42 days from the invoice date, the invoice is reversed back to the origin and UPS tries to collect from the shipper.

How to Dispute UPS Import Charges

• Calculation errors: if you think the duty or tax was calculated wrong, UPS says to call the UPS Billing number on your invoice or email the UPS Post Entry Department at usspdutydiscrepancyreview@ups.com.
• Formal corrections cost money: UPS charges $95.00, or $120.00 for complex cases, for post entry services such as a protest or post summary correction filed with CBP. Compare that with the duty you expect to recover.
• Check the basics: declared value vs. what you paid, the product description, a $12 ICOD fee after you paid online, and a disbursement fee above 2.5% or the $17.50 minimum.

For Shippers: Keep Import C.O.D. Off Your Customer’s Doorstep

• Bill duties and taxes to your UPS account before delivery. The ICOD fee does not apply, and your customer isn’t surprised by a bill.
• Budget for Duty and Tax Forwarding. If duties and taxes are billed outside the destination country, UPS adds $15.00 per shipment.
• Send UPS your customer’s email and phone so they get the payment notification and can pay online.
• Mark country of origin. An unmarked shipment costs $80.00 in marking notice processing.

For the same choice on exports to Europe, see our DDU to DDP guide.

What “Import C.O.D. (ICOD) charges have been paid or billed” Means

UPS doesn’t define this tracking message on its tracking-status help page. Read with UPS’s ICOD definition, it indicates the import charges have been settled, either paid or billed to an account. Check the charges on the tracking page before paying again.

Frequently Asked Questions

What is Import C.O.D. on UPS?

Import C.O.D. (ICOD) is how UPS collects unpaid duties, taxes and brokerage fees from the U.S. recipient of an international package at delivery. UPS charges a $12.00 ICOD fee when it collects this way.

How much is the UPS ICOD fee in 2026?

$12.00, charged to the U.S. recipient when import charges are collected at delivery. It does not apply if you pay online before delivery or if duties and taxes were billed to a UPS account before delivery.

Why do I have to pay import charges on a package under $800?

CBP has suspended the $800 de minimis exemption. Duty-free de minimis treatment was suspended from August 29, 2025, and a CBP rule effective June 24, 2026 suspended it indefinitely for non-postal shipments, so low-value imports now go through formal or informal entry.

How do I pay UPS import charges online?

Track the package on ups.com and click Pay Now in the yellow banner, or use the link in UPS’s shipment payment notification if you receive one. Paying before delivery avoids the $12 ICOD fee.

What happens if I don’t pay UPS import charges?

UPS tries to collect through its normal collections process, which runs up to 42 days from the invoice date. If the receiver still hasn’t paid, the invoice is reversed back to the shipper.

What is the UPS disbursement fee?

It is UPS’s fee for paying duty and tax to customs on your behalf: 2.5% of the duty and tax, with a $17.50 minimum, in the September 7, 2026 UPS rate guide.

Related Reading

• What Does UPS COD Fee Mean? $22.50 Collect on Delivery Charge (2026)
• Does FedEx Do COD? What C.O.D. Means in Shipping (2026)
• DDU to DDP: What DHL's EU Change Means for U.S. Shippers (2026)
• How to Audit a UPS Invoice: A Step-by-Step Checklist (2026)
• When It's Worth Disputing UPS Charges and When It's Not
• UPS 2027 Rate Increase: 5.9% Average GRI Effective December 21, 2026

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This article is for informational purposes only. Carrier rates, surcharges, and policies change frequently — always verify current terms directly with the carrier for your specific situation. Have questions? Reach out to us — we're happy to help.